The US Federal Reserve began shopping for company bonds this week as a part of a $ 250 billion program funded by the CARES Act. The transfer goals to backstop companies and their staff.
Increase Bust talks to Michael Pento, president and founding father of Pento Portfolio Methods, in regards to the regulator’s excessive measures to save lots of the US inventory market from bottoming out.
“That is what’s taking place: the Fed now owns the Treasury market, the municipal bond market, the company bond market, the junk bond market, the CLO market, and by proxy the true property market and the inventory market,” says Pento, including: “They’re all in an enormous bubble, owned by the Federal Reserve.”
“The Fed is trapped, they will by no means unwind this stability sheet, it’s going to develop and develop till we stagflate our option to oblivion… We needs to be very involved,” mentioned Pento.
For extra tales on economic system & finance go to RT’s enterprise part
